I am purchasing cement. The bill includes Cenvat(10%),education cess(3%) and loaded to the the basic rate. This total amount is further subjected to a TN VAT(5%). I request a clarification on the following points. 1. Whether I am liable to pay TN VAT on the Cenvat & education cess also. 2. Whether Cenvat & Service tax are one and the same.
I will be thankful to you if my doubts are cleared by email
17 March 2012
Yes you are liable to pay VAT on this cenvat and cess part as it is before VAT Price charged. and cenvat & service tax is different tax one on material and other on service, but nature wise both are same and controlled by same govt department.